Today's stocks to watch include FedEx Corporation (FDX), Anheuser Busch Inbev SA (ADR) (BUD), and Intra-Cellular Therapies Inc (ITCI)
U.S. stocks are slightly higher this morning, remaining cautious as the Federal Open Market Committee (FOMC) begins its highly anticipated two-day meeting. In addition to the Fed, traders are digesting the consumer price index (CPI), which showed an unexpected drop in August. Today's equities in focus are package delivery firm FedEx Corporation (NYSE: FDX), beer baron Anheuser Busch Inbev SA (ADR) (NYSE:BUD), and biopharmaceutical concern Intra-Cellular Therapies Inc (NASDAQ:ITCI).
- FDX is 2.6% lower at $150.01, after cutting its fiscal-year outlook (subscription required). The freight firm blamed the move on weak demand in its freight segment and higher costs in its ground segment. FedEx Corporation slipped along with the broader equities market in August, but seems to have found a foothold atop its 32-week moving average. Meanwhile, 11 of the 18 brokerages tracking the delivery company rate it a "strong buy," leaving the stock vulnerable to potentail downgrades. As for options players, calls have recently outstripped puts in the option pits, suggesting traders were hoping for a post-earnings move higher.
- BUD is 6.5% higher at $115.11, after news surfaced that the beverage behemoth has approached SABMiller about a takeover. It is believed the deal will value SABMiller "well in excess" of $75 billion while creating a brewing Goliath that will likely lord over the beverage market. Anheuser Busch Inbev SA (ADR) is now back in the black for 2015, and attempting to take out its 10-week moving average for the first time since late July. Option players are likely cheering the M&A buzz, as the stock's 10-day call/put volume ratio on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits at 6.86 -- above 69% of all other readings from the past year.
- ITCI jumped nearly 80% out of the gate -- and hit a record high of $46.68 -- after announcing that its experimental lead drug met its main goal of reducing the severity of schizophrenia symptoms. Intra-Cellular Therapies Inc could see a bit of a short-covering burst, too, as nearly 11% of its float is sold short. At ITCI's average pace of trading, it would take about a week to buy back all these bearish bets. At last check, ITCI was up 75% at $45.77.
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